The Minister for Finance, Paschal Donohoe TD, will bring a Financial Resolution to the Dáil tomorrow (Wednesday) evening, which will impose a stamp duty charge of 10% on the multiple purchase of 10 or more residential houses. This higher charge, as well as applying to bulk purchases, will also apply to a situation where a person acquires 10 or more units on a cumulative basis over a 12 month period.
Once triggered, the 10% rate will apply to all houses acquired in that 12 month period, including the first 9 purchases.
The background to this Financial Resolution is the purchase by institutional investors of all or a significant proportion of residential housing estates, particularly close to the time of completion. This 10% rate is intended to provide a significant disincentive to this practice of multiple purchase by institutional investors of large parts of, or indeed whole, housing estates before they reach the market, thus denying first-time buyers an opportunity to purchase a home.
Minister Donohoe said: “The introduction of the higher stamp duty rate of 10% for the bulk purchase of houses is designed to dissuade the practice whereby institutional investors buy up homes that are close to completion, or fully completed, thereby denying first-time buyers the chance of acquiring and owning their own home. Ensuring that people have access to home ownership in this country is a priority for Government.”